DepoofMarriottVP-1.docx

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(…..)GLENNA TOPPEL v. MARRIOTT INTERNATIONAt:ttNC.

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Rosenman, Michael H.

November 13, 2007

Volume 1

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(Case 1:03-cv-03042-DCF Document 39-5 Filed 02/29/08 Page 1 of 17)

COMPUTER REPORTING INC.

501 Fifth Avenue

Suite 500

New York, New York 10017 (212}986-1344

FAX: 212-983-9149

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(1 (Pages 1 to 4)(212) 986-1344) (COMPUTER REPORTING INC.)

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2 IN THE UNITED STATES DISTRICT COURT 2

3 FOR THE SOUTHERN DISTRICT OF MARYLAND 3

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IT IS HEREBY STIPULATED AND AGREED, by and

5 GLENNA TOPPEL and ROBERT TOPPEL

6 Plaintiffs,

7 -v- 03-CV-3042 (DAB)

8MARRIOTT INTERNATIONAL, INC.

9 MARRIOTT WORLDWIDE CORPORATION

10 Defendants.

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12

13 November 13, 2007

14 10:23 a.m.

15

16

17 Deposition of MICHAEL H. ROSENMAN,

18 held at the offices of The Bethesda Marriott

19 Suites, 6711 Democracy Boulevard, Bethesda,

20 Maryland, taken pursuant to Notice, before

21 Jacqueline Kimball, a Registered

22 Professional Reporter and Notary Public.

23

24

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5 between the attorneys for the respective parties

6 herein, that filing and sealing be and the same

7 are hereby waived.

8 IT IS FURTilER STIPULATED AND AGREED

9 that all objections, except as to the form of the

10 question, shall be reserved to the time

11 of the trial…·

12 IT IS FURTilER STIPULATED AND AGREEDthat the

13 within deposition may be signed and sworn to

14 before any officer authorized to administer an

15 oath, with the same force and effect aS if signed

16 and sworn to before the offic 'b¢fore whom the

17 within deposition was taken. _.

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2 APPEARANCES:

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4

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2 MICHAEL H. ROSENMAN,

3 called for examinati6.n, having been duly

4 sworn to tell the truth, the whole truth and

Page4

5 KREINDLER & KREINDLER

6 Attorneys for the Plaintiffs

7 100 Park Avenue, 18th Floor

8 New,NewYork 10017-5590

9 BY: RICHARD GARBARINI, ESQ.,

10 Of Counsel

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13 BABCHIK & YOUNG

14 Attorneys for the Defendants

15 200 East Post Road

16 White Plains, New York 10601

17 BY: BRUCE M. YOUNG, ESQ.,

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5 nothing but the trut4, testified as follows:

6 MR. GARBARINI: ·Preliininary matter,

7 Mr. Young, are we gbing to dictate to the

8 normal federal stipulations?

9 MR. YOUNG:. Sure.

10 EXAMINATIONBY

11 MR. GARBARINI:

12 Q. Could you please state and spell your

13 name for the record.

14 A. Last name is Rosenman,

15 R-0-S-E-N-M-A-N, first name is Michael,

16 M-I-C-H-A-E-L.

17 Q. Where do you reside?

18 A. In Chevy Chase;Maryland.

19 Q. Who do youwork for?

20 A. Marriott Intel;tlational, Inc.

21 Q. What is youttitlethere:?

22 A. I am a vice president and senior

23 counsel. . ·

24 Q. Could you please explain some of your

25 major duties.

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(1M. Rosenman12· A. Sure, I'm senior counsel in the brand23and franchise transactions group, that's the group34in the law department that handles all franchise45contracting matter, so essentially for new56contracts we negotiate and paper the new deals and67then for existing franchise hotels iflegal78problems arise,·. operations issues, we would also89work on those. The primary transactional910component. of that is what we would call a1011relicensing when a franchise hotel is sold, the1112owner wants to sell it, the franchise agreement1213does not give the owner the right to transfer the1314franchise agreement to the new buyer. So the new1415buyer will apply to become a franchisee. At that1516point we would enter into a franchise agreement1617with the buyer.1718Q. Is that because most franchise1819agreements have that clause in it allowing them1920not to freely change the franchise title to the2021Marriott name?2122A. Under our form franchise agreements a2223sale of the hotel is a breach, we call it default2324and then terminate the franchise agreement. Most2425buyers want to continue to have a franchise and so25Page6Page 81M. Rosenman1M.Rosenman2we enter into a new agreement with the buyer.2Q. If you are here pursuant to a 30(b)(6)3Q. Do you know why you're here today?3you are here under the guise that are you4A.· In general, yes.4competent to testify to each one of these5Q. . Can you tell me why you're here?5questions. So I will ask you again, are you6A. I understand there's a lawsuit6competent totestify to that question?7involving one of our franchise hotels in Nassau.78MR. YOUNG: Former franchise.89Q: Former franchise. Have you been910deposed before?1011A. I have.1112Q. Can you tell me the number of times?1213A. Once.1314Q. You're familiar with the format of a1415deposition and the way of answering questions. I1516want to say, to preface any question I might say,1617I'm from New York, I tend to talk a little1718quickly. So if you don't understand anything I1819say or you want me to rephrase a question I will1920gladly do that. Please feel free at any time if2021you don't understand what I'm saying, or if I tend2122to talk a little too quickly.2223A. Understood.2324Q. The first thirig I want to do I would2425like to mark the deposition notice.25)Case 1:03-cv-03042-DCFDocument 39-5 Filed 02/29/08 Page 4 of 17r .

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Page 9 1M. Rosenman 2 MR. YOUNG: Between whom and whom? 3Q. You can ask me to rephrase if you 4 want. 5MR. YOUNG: I'd like you to rephrase. 6 A. Yeah, could you rephrase it. 7 Q. Have you ever worked on any agreements 8 involving the Nassau Marriott Resort and Crystal 9 Palace Casino? 10A. No. 11 Q. I want to tum your attention to 12 number 4on this list. Have you ever worked on 13 any agreements involving the Sol Mare, that's 14 M-A-R-E, restaurant located in the Nassau 15 Marriott? 16A. No. 17Q. Now I want to ask you some questions 18 regarding the day-to-day control or alleged 19 control of the Marriott franchise agreement and 20 the Nassau Crystal Palace Hotel and Casino. 21(Record read.) 22MR. YOUNG: Let me object to the 23preface, let me say that. I think for 24shorthand purposes maybe we could refer to 25the entities as Marriott International,	Page II 1M.Rosenman 2 policies and procedures that govern the Nassau 3hotel? 4 MR. YOUNG: Objection to the form. 5You haven't established that the Nassau, I'm 6 sorry, that the policies and procedures as 7 you put it, quote, govern the hotel. I know 8 what you want to get, he's here to testify; 9 but I have an objection to the form. You 10can answer the question. 11 A. Not specific to the hotel. 12MR. GARBARINI: I would like to this 13 marked as the Rosenman Exhibit 2. 14(Rosenman Exhibit 2,First Ten phase 15IIIExpress Check-in, marked for 16identification, as of this date.) 17 BY MR. GARBARINI: 18 Q. These documents haven't been copied so 19 you have actually the copies that we originally 20 received. No further copying has been made of 21 them pursuant to an agreement I understand that 22 Hilary Taylor of my office reached with — was it 23 you, Mr. Young? 24MR. YOUNG: Yes. 25Q. Therefore we'll be working with one
Page 10 1M. Rosenman 2 Marriott Worldwide and what's the name of 3the hotel, Nassau Crystal Palace. 4 MR. GARBARINI: We'll call it at 5Crystal Palace. 6 MR. YOUNG: I think it's important 7 when we're talking about Marriott that there 8 be the distinction between international, 9 worldwide and of course the relationship 10with the Crystal Palace. 11 Q. Marriott International was the party 12 that was just substituted in, one party was 13 substituted out? 14MR. YOUNG: International was the 15original entity. Worldwide has agreed for 16purposes ofthis litigation to subject 17itself to the jurisdiction and to be 18amenable to suit. 19MR. GARBARINI: Thank you. 20MR. YOUNG: No problem. 21Q. Are you familiar with the SOP manual, 22 standard operating procedure manual for the Nassau 23 hotel? 24A. No. 25Q. Are you familiar with the Marriott	Page 12 1M. Rosenman 2 copy of those matters. Referring to Silvennan 3 Exhibit B– Rosenman Exhibit 2. Could you 4 describe the policy that represents. 5A. Let's see, it's entitled, says, "Name, 6 First Ten phase IIIExpress Check-in." 7 Q. Where it says applies to, and it says 8 applies to international franchise required, could 9 you please explain what that means? 10A. Just to be clear, it says applies to 11 NALO managed, it says NALO MGD, that stands for 12 NALO managed. NALO, the letters N-A-L-0, is North 13 America and Latin America– the L is for. NALO 14 FR required, that would be franchise. And says 15 international manage required, international 16 franchise required. 17 Q. Could you explain to us the difference 18 between international managed and international 19 franchised? 20A. Sure. Why don'tI explain the 21 difference between — 22MR. YOUNG: Just answer his question. 23A. Managed, a managed hotel is a hotel 24 that Marriott employees are on the property and 25 manage the hotel pursuant to a management

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(Page l31 M. Rosenman2 agreement between the owner of the hotel and a3 Marriott entity. An international franchise is a4 franchise hotel that's, the employees and the5 management of the hotel is done by the franchisee6 pursuant to a franchise agreement between a7 Marriott entity and the owner of the hotel.8 Q. And is that document part of the SOP9 manual?10 A. I don't know if it is anymore, the SOP11 manual changes all the time. So there's a date12 here that says effective September 1, 1997. And13 then it says last reviewed March l, 2005. I14 actually don't know if it's part of the SOP which15 stands for standard operating procedure now.16 Q. Could you describe what the SOP manual17 is and how it changes.18 A. The SOP manual is standard operating19 procedure's part of our standards for hotels. And20 again, standards change and the way that they get21 changed is that these SOPs are revised, added or22 deleted.23 Q. So would a document like that be part24 of the SOP on any given time — let me retract25 that question. Looking at that when it saysPage 151 M.Rosenman2 BY MR. GARBARINI:3 Q.Could you please read the name of it,4 and describe what is that document.5A. Again, I don't know, the title says,6 Name Administration, then it says, "Discipline,7 Housekeeping-Laundry."8 Q.Is that a protocol, what is that9 document for?10 A. It's part of the standard operating11 procedures and appears to be for laundry, certain12 laundry procedures. It says objective, to13 properly administer laundry procedures to industry14 standard.15 Q. In 2002 for the applicable period, is16 that international franchise required?17A. Well, on this exhibit it says18 international franchise required and it says19 effective June 1, 1997, last reviewed June 1,20 1997.21 Q. So was it required as a minimum22 requirement at the Nassau hotel in 2002?23 A. That I don't know. If it was a24 standard operating procedure in 2002, it would25 apply to the Nassau Crystal Palace hotel.Page 141 M. Rosenman2 international franchise requiredwould that3 pertain to the Nassau hotel?4 MR. YOUNG: Back in 2002.5 Q. Back in 2002?6 A. It looks like it would, yes, an7 international franchise hotel would be the Nassau8 Crystal Palace.9Q. Does that set the minimum requirements10 for that hotel?11 A. For .whatever topic is being covered by12 the hotel?13 Q. I'm sorry, I'm talking for that14 particular topic.15 A. Right, for this particular topic.16 Q. Which is the First Ten Phase ill17 Express Check-in.18 A. Generally, yes.19 Q. Thanks.20 MR. GARBARINI: I'd like to mark this21 as the Rosenman Exhibit 3.22 (Rosenman Exhibit 3,23 Housekeeping/Laundry Protocol, marked for24 identification, as ofthis date.)25 (Discussion off the record.)Page 161 M.Rosenman2 Q.Thank you: ' ·3 MR. GARBARINI: I'd like this marked4 as Rosenman Exhibit 4.5 (Rosenman Exhibit 4, SOPs January6 2002, marked for identification, as of this7 date.)8 MR. YOUNG: I think the witness9 indicated off the record there was an10correction as to an acronym.11THE WITNESS: NALO, N-A-L-0, is North12America Lodging Operations.13 BY MR. GARBARINI:14Q.Mr. Rosenman, while we were off the15 record you parsed out the forms that Marriott16 submitted pursuant to our document demand into two17 groups.18Could you please describe both groups.19 A. One pile is a list of the SOPs for20 which the last revised date is before January of21 2002.22So for that pile of printed SOPs these23 would be the standard operating procedure in place24 in January of2002.25 Q. That pile would set the minimum)Case 1:03-cv-03042-DCF Document 39-5 Filed 02/29/08 Page 6 of 17

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1 M. Rosenman

2 requirements for what each procedure details?

3 MR. YOUNG: For the topic.

4 Q. For that topic?

5 A. For that topic.

6 Q. Could you read off the titles that are

7 in that pile for the record?

8 A. Sure, associate radio. Would you like

9 me to read the names for all of them?

10 Q. Yes.

11 A. Associate radio; bell stand

12 responsibilities; bucket check; cash handling

13 procedures; check in PMS, that's the letters PMS

14 properties; cross sell policy; energy charge; fax

15 pricing; folio rebates and adjustments; guest

16 charges; guest safety; guest services logbook and

17 record keeping; guest room security-open

18 door/close door policies; high speed — this is

19 the wrong one, should be in this pile.

20 Hospitality; housekeeping diagnostic

21 tool, mail, messages, packages, facsimiles;

22 marketing communications display; nonuseable

23 linen; processing linen; repeat guests; room

24 inventory verification; same day selling strategy;

25 sanitation and maintenance; shift closings; soiled

1 M. Rosenman

2 of those documents prior to the accident?

3 A. Yes.

4 Q. So each one of those –let me retract

5 that. There was a standard· operating procedure

6 that was in effect at the time of the accident for

7 each one of those titles?

8 A. That's correct.

9 Q. Could we read off the titles in that

10 group?

11 A. Yes, Americans with Disabilities Act;

12 high speed Internet acc.ess pricing; work

13 assignments; tents and temporary structures; TTY

14 equipment; use of pyrotechnics; voluntarily walked

15 guests; telephone PBX services cost allocations;

16 spa service; service diagnostic tool; resolution

17 of discrepancies and verification of room status;

18 room blocking procedures; public restroom

19 supplies; recreation uniform requirements; non

20 hotel guest fitness center memberships; operating

21 supplies and guest room supplies control; PBX

22 telephone scripting; pool lifesaving equipment;

23 minimum treatment; Marriott rewards; key control;

24 light bulb wattage; linen and terry inventory

25 controls; lost and found department; inspection

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2 linen handling; standards on cleanliness; sweep 2

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procedures; international pricing; involuntarily

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3 logs; telecommunications audit; telephone 3

4 department overview; telephone equipment operation 4

5 and maintenance; telephone moves, ads, changes and 5

6 pricing; telephone pricing and disclosure; wake-up 6

7 calls. 7

8 MR. GARBARINI: Mr. Young, ifyou 8

9 don't mind I would like this marked 9

10 collectively as the collective group as 10

11 Rosenman Exhibit 5. 11

12 (Rosenman Exhibit 5, SOPs after 12

13 January 2002, marked for identification, as 13

14 of this date.) 14

15 BY MR. GARBARINI: 15

16 Q. Mr. Rosenman, I want to return back to 16

17 the Rosenman Exhibit 4. The Rosenman Exhibit 4, 17

18 now, you've had a second group of documents, could 18

19 you please describe what that group is. 19

20 A. This is the portion of those documents 20

21 that were handed to me and I identified as a 21

22 standard operating procedures manual for which the 22

23 last revised date is after January of 2002. 23

24 Q. Now, while the last revised date was 24

25 after that date, is the effective date on each one 25

walked guests; in-room spa and massage services; in-room safe; inspection and testing schedule for fire protection systems part one; inspection and testing schedule for fire protection services part two; hotel retail outlet; hours and operation and appointment/cancellation policy; guest room lighting; guest room cleaning quarterly; guest room jetted tubs cleaning standard; guest laundry; guest response and problem analysis; gas systems and buildings; flag display; fitness (health

center certification/signage requirements);

eligibility rate identification check; cribs standards; control of guest loaned items; complimentary newspaper; Christmas tree and decorations; clean linen handling; checkout procedures, check-in/checkout procedures; associate room rate policy.

Q. Turning to the Marriott Rewards

program, could you please describe the Marriott

Rewards program.

A. It is the guest loyalty program of

Marriott International.

Q. Could you please describe how the

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1 M.Rosenman1 .M. Rosenman

2 program works. 2 requirements for staffing and training at the

3 A. A guest a customer can sign up for 3 Nassau Marriott, I'm sony, at the Nassau hotel?

4 Marriott Rewards. Each stay in a Marriott branded 4 A. Are you referring to all of section

5 hotel earns them rewards points, when they reach a 5 5.2?

6 certain number of points they can exchange points 6 Q. 5.2.

7 for free guest stays if the rooms are available. 7 A. I'm going to review 5.2.

8 If they a reach a certain level they 8 Q. Let me rephrase the question. 5.2

9 get certain preferences, they can call the hotel 9 refers to the system for training an employee

10 and request certain things. 10 qualified personnel.

11 Q. So if a Marriott guest earns reward 11 MR. YOUNG: The question is?

12 points at let's say the Bethesda Marriott suites 12 A. What's the question?

13 they can use them at any Marriott managed and 13 Q. Does Marriott provide training for

14 franchised property? 14 employees at the Nassau hotel?

15 A. The program applies to Marriott 15 MR. YOUNG: Or does this tell them?

16 managed and franchised property. 16 Q. Does the franchise provide or

17 Q. Does it also apply to Marriott owned 17 prescribe training for employees at the Nassau

(I)18 cooperatives and condominiums?18 hotel?

19 MR. YOUNG: Objection as to relevance. 19 A. My reading of 5.2B says, franchisee

20 A. I think the references — 20 shall at no cost to franchisor, conduct such

(22does Marriott own co-ops and what have you22order to train them properly to operate,23as he suggested in his question?23administer and manage the hotel in accordance with24A. We have time share.24the System.25Q. So does the Marriott Rewards program25Q. Please, when it says in accordance)21 MR. YOUNG: One second. I don't know, 21 training for hotel employees as may be required in J

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2 apply to time shares? · · .. ' ·2

3 A. Certain components of the Marriott 3

4 Rewards program applies to Marriott Vacation Club 4

5 International which is our time share business. 5

6 Q. Mr. Rosenman, I want to give you a 6

7 copy of the franchise agreement. Have you had a 7

8 chance, opportunity, to review this franchise 8

9 agreement before today? 9

10 A. I have not. 10

11 MR. GARBARINI: I would like the 11

12 affidavit of Robert Sands in support of 12

13 Defendant's Motion to Dismiss marked as 13

14 Rosenman Exhibit 6. 14

15 (Rosenman Exhibit 6, Sands Affidavit, 15

16 marked for identification, as of this date.) 16

17 BY MR. GARBARINI: 17

18 Q.Take a look at the franchise 18

19 agreement. 19

20 MR. YOUNG: Anything you want him to 20

21 look at in particular it's a lengthy 21

22 document. 22

23 Q. Turning your attention to page 16, 23

24 article 5, staffing and training. Marriott 24

25 provides, does that provide the minimum 25

6 (Pages 21 to 24)

With the system, could you please describe what

System they're referring to?

A. System, capital S refers to the brand of Marriott hotels and resorts.

Q. So the System refers to the brand? A. Yes.

Q. When it says in accordance with the System it's saying in accordance with the Marriott brand employee qualified hotels?

A. Right, with — for Marriott branded hotels, correct.

Q. On page 18, turning your attention to page 9. On page 9 System is defined as the procedures standards, specifications, controls, et cetera. Does that refer to the System as defined by the SOP manual?

A. I have to read through all the definition.

So System refers to all of those

standards and procedures which the Marriott group of companies have developed to operate a Marriott branded hotel. And some of those procedures are collected in the SOP manual.

Q. Could you please tell me what this

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2 refers to the reservation system, I believe is

3 defined on page 8. Could you tell me what is the

4 MHRS hotel reservation system?

5 A. MHRS just means Marriott hotels and

6 resorts. So it's the reservation system that

7 would apply for those hotels.

(9the reservation system in the Nassau hotel?910MR. YOUNG: No, no, no, that's the10)8 Q. That's the minimum requirements for

11 definition as a defined term.

12 A. The reservation system is not, the

13 reservation system is what it is, it's the

14 hardware and software that make up the reservation

15 system.

16 Q. And the Nassau hotel uses that

17 reservation system?

18 A. Yes.

19 Q. And used on the date in question?

20 A. It would have used that reservation

21 system.

22 Q. And would it also have used the

23 property management system?

24 A. Yes.

25 Q. It would also have used the hotel

2 something that the franchisor will do no more than

3 two times per year. And the hotel has to conduct,

4 has to participate in the guest satisfaction

5 surveys which typically involve at that time

6 probably comment cards by the guests. Now they're

7 e-mail responses to a set group of questions that

8 Marriott sets that ask guest responses to their stay at the hotel.

Q. On page 23 in section 6.8B.

11 (Discussion off the record.)

12 BY MR. GARBARINI:

13 Q. 6.8B describes what– could you

14 please tell me what it describes?

15 A. 6.8B says that if the franchisee fails

16 to comply with the quality assurance program which

17 is described in 6.8A, franchisor may notify the

18 franchisee that has failed and the franchisor may

19 require franchisee to -cure that failure.

20 Q. Within a, provided a 30-day cure

21 period is that what it provides?

22 A. It provides for a 30-day cure period

23 or if cannot be reasonably cured within 30 days

24 then they have to begin to cure within 30 days

25 after the notice.

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2 design guide?

3 A. The hotel design guide which sets

4 forth the design standards would have applied to

5 this hotel.

6 MR. YOUNG: At the time.

7 A. At the time of the incident.

8 Q. Going to page 22, please on 6.8,

9 quality assurance program. It says franchisor

10 shall administer a quality assurance program for

11 MHRS hotels, shall include conducting periodic

12 inspections of the hotel and customer surveys.

13 Could you please describe what are the

14 requirements for the periodic inspections that it

15 discusses here?

16 A. It's not a requirement on the

17 franchisee.

2 Q. Now, the question where it says, as

3 part of that it says may. In what circumstances

4 would they not notify the franchisee that it had

5 to cure and what circumstances would it mandate

6 that it had to cure?

7 MR. YOUNG: That's just one

8 interpretation. Your question suggests but

9 one interpretation ofthe phrasing so I have

10 an objection to the form.

11 You can answer the question, Michael.

12 A. My reading of this, not as the drafter

13 of the document, is that it's at the option of

14 franchisor to notify them and require them to

15 cure. It obviously gives the franchisor the

16 option to do it.

17 MR. YOUNG: At their election.

18 It's a service that the franchisor

19 will perform to inspect the hotel.

20 Q. So when it says franchisor shall

21 administer, you're saying that is a program that

22 the franchisee may or may not participate in?

23 A. No, it's not optional. But it's not,

24 it's not optional, nevertheless the inspection is

25 done by the franchisor, so the inspection is

18 A. At the franchisor's election.

19 Q. Turn to page 29 article 9, advertising

20 and marketing. In section 9.1 in the middle of

21 the paragraph it provides that they shall conform

22 to such standards and specifications as franchisor

23 may prescribe. Is there ever a time that Marriott

24 allows the franchisee to use the Marriott marks or

25 does not — let me rephrase the question. Does

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2 Marriott control every aspect of its marks at the

3 franchisee?

4 A. No.

5 Q. What aspects does it not control?

6 A. What do you mean by control?

7 Q. Does it allow the free use of its

8 marks by the franchisee without approval by

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2 MR. YOUNG: In Marriott franchised

3 properties in general or in this particular

4 case?

5 Q. In this particular case.

6 A. I don't know in this particular case

7 what Marriott's practice was for the menus.

8 Q. Going back to the inspections —

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9 Marriott?

10 A. There are definitely standards about

11 how the franchisee can use the Marriott

12 trademarks, trade names, logos, that sort of

13 intellectual property. Those standards are

14 usually set forth in the franchise agreement and

15 in the standard operating procedures.

16 Nevertheless, can't answer the question about

17 control as property because there are no Marriott

18 employees on a fr chise property.

19 Q. Does the franchise agreement, do the

20 standard form Marriott franchise agreements

21 provide for Marriott employees to have office

22 space on the franchisee property?

23 A. No.

24 Q. On page 30 in 9.3, marketing fund and

25 marketing activities, could you please tell me

9 MR. GARBARINI: I would like to mark

10 this as Rosenman Exhibit 7.

11 (Rosenman Exhibit 7, Quality Assurance i·

12 Checklist, marked for identification, as of I

13 this date.)

14 BY MR. GARBARINI:

15 Q. Turning back to page 21, food and I

16 beverage operation, was the Sol Mare restaurant,

(I)17 I'm sorry, let me rephrase. Was the Sol Mare

18 restaurant not subject to the franchise, this

19 franchise agreement?

(l)20 MR. YOUNG: In other words, he's

21 asking the individual lessee ofthe

22 restaurant facility.

23 A. I'm looking at the defined terms. So

(I·)24 the defined term food and beverage operations

25 which was referred to in that section on page 3 of

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2 what the marketing fund is? ··-

3 A. The marketing fund is a fund that all

4 MHRS system hotels pay into usually under the

5 franchise agreement as a percentage of gross

6 revenues. That money is paid to the franchisor

7 which administers a marketing fund which is used

8 for marketing activities, which are typically

9 advertising activities, you know, buying

10 advertisements, that advertise that brand.

11 Q. Does Marriott control — let me

12 rephrase that. Tum to the portion and control of

13 the Sol Mare Restaurant. Aie you familiar with

14 any agreements between Marriott and the Sol Mare

15 restaurant outside of the franchise agreement?

16 A. I'm not familiar with any agreements

17 at all between Marriott and the Sol Mare

18 restaurant.

19 Q. Does Marriott control the menus at the

20 restaurants?

21 MR. YOUNG: Objection to the form of

22 the question.

23 Q. In Marriott controlled properties?

24 MR. YOUNG: In Marriott managed -­

25 Q. In Marriott franchised?

2· – the franchise agreement means all of the following

3 services of the hotel, and that includes all

4 restaurant dining, bar and lounge services. So my

5 reading of it it would include any restaurant at

6 the hotel.

7 Q. In 6.5A(iv) once again on page 21 it

8 says franchisee shall use only menus, signs,

9 promotional displays and other materials which

10 comply with the style, patten and design I

11 prescribed in the SOP manual otherwise approved in !

12 advance by the franchisor. Could you please tell

13 me what specific obligations this placed on the

14 restaurant in the Nassau hotel?

15 MR. YOUNG: You're cross-construing

16 obligations here. What one relates to the

17 food and beverage operations and another

18 relating to what you just described in that

19 paragraph.

20 Q. Food and beverage operations, the Sol j .

21 Mare restaurant from what you said is subject to

22 the food and beverage operation section of the

23 franchise agreement?

24 A. It appears that way from my reading of

25 the franchise.

8 (Pages 29 to 32)

COMPUTER REPORTING INC.(212) 986-1344

Page 33 1 M. Rosenman 2 Q. Is it also subject to 6.5A subsection 3 4? 4 MR. YOUNG: 6.5A subsection 4 speaks 5 to the franchisee. 6 MR. GARBARINI: Please let him answer. 7 MR. YOUNG: I'm not directing him not 8 to answer. You're crossing — 9 Q. Does 6.5A subsection 4 also pertain to 10 the Sol Mare restaurant? 11 A. Unless elsewhere in this agreement the 12 Sol Mare restaurant has been excepted out of the 13defined food and beverage operations, I have not 14 found. Then 6.5A(iv) which governs food and 15 beverage operations would govern franchisee's 16 management of the Sol Mare restaurant. 17 (Brief pause in the proceedings.) 18 BY MR. GARBARINI: 19 Q. Mr. Rosenman, I am showing you 20 Rosenman 7. 21 Please describe that document for me. 22 A. The title is "Marriott Hotel Resorts 23 and Suites International Brand Standards 24 Checklist," and it has a date of visit, says 1 to 25 3 April '02.
	Page 35 1 M.Rosenman 2 two choices, first choice annual and the second 3 choice would be reinspect. This has a checkmark 4 next to reinspect. So it would be a follow-up 5 inspection following up on an earlier quality 6 assurance inspection.. 7 Q. When it says minimum standards does 8 that refer to the minimum requirements that 9 Marriott expects? 10 A. Where does it say minimum? 11 Q. I'm sorry. Area of review, minimum 12 standards percentage? 13 A. Minimum standards percentage, that's 14 the percentage score for each item that is 15 supposed to be the minimum standard for that item 16 for all MHRS international hotels. 17 Q. And what is the result if an 18 individual standard is not — let me rephrase. 19 What minimum standard does Marriott expect each 20 hotel in every area to reach, is there a guideline 21 for that? 22 A. In the column that says minimum 23 standard percentage that I'm looking at each of 24 those says 80 percent. So it would appear that 25 the standard at the time for each of these would
Page 34 1 M. Rosenman 2 Q. Was that visit done as part of the 3 quality assurance program? 4 A. This appears to be part, yes, a visit 5 that would have been conducted pursuant to the 6 quality assurance program. 7 MR. YOUNG: Note my objection to this 8 document which was produced in terms of 9 discovery but to the extent it may be 10 admissible at the time of trial. It was 11 produced because the broad discovery in 12 federal court, however the date being 13 subsequent to the date ofloss herein I'm 14 reserving any and all the rights with 15 respect to objecting to its relevancy at the 16 time of trial, and any other such objections 17 that may be available. 18 Q. So this document which we'll refer to 19 the brand standards checklist? 20 A. It's typically referred to as a 21 quality assurance checklist. 22 Q. And the importance, what the 23 importance of this to maintain a Marriott brand? 24 A. Well, from this document there's an 25 item here that says type of evaluation, there's	Page 36 1 M.Rosenman 2 be 80 percent. 3 Q. So for each one of those Marriott is 4 doing quality that it is reaching 80 percent of 5 the minimum requirements? 6 A. For each of the items for instance, 7 kitchen, item number 9, there's a number of 8 responses that were calculated and then there's a 9 number ofyes and a number of nos. And for each 10 of these items the percentage of yes answers to 11 meet the minimum standards should be 80 percent. 12 Q. Okay. If you tum to, there's not a 13 page number on this — 14 MR. YOUNG: Which one? 15 MR. GARBARINI: The page dealing with 16 the food and beverage for the brand 17 standards checklist. These are nonnumberred 18 pages. 19 MR. YOUNG: Is this the one you're 20 talking about? 21 MR. GARBARINI: Yeah, it's fine. 22 That's as good as any. 23 MR. YOUNG: Brand standard checklist. 24 Q. As part of your quality assurance 25 test, Marriott tests, it says the item and the

9 (Pages 33 to 36)

(Case 1:03-cv-03042-DCF Document 39-5 Filed 02/29/08 Page 11of 17)

(COMPUTER REPORTING INC.) ((212) 986-1344)

(COMPUTER REPORTING INC.) ((212) 986-1344)

Case 1:03-cv-03042-DCF Document 39-5 Filed 02/29/08 Page 12 of 17

Page 37

Page 39

I,..

1 M. Rosenman

2 temperature in the kitchen as part of their

3 quality assurance; is that correct?

4 A. First of all it's not, I should be

5 clear, it's often not Marriott employees. Now

6 typically it's our practice to, we've got a couple

7 of third-party vendors who we train to do these,

8 and they're given training and then they go to

9 each hotel with the checklist and they either ask

10 questions or look to verify certain information.

11 And then they will say, "Yes" or "No".

12 And the those third-party vendors would check a

13"Yes" or "No". So it looks to me that one ofthe

14 things is the internal-• the temperature of

15 particular items should be a certain temperature.

16 If it meets that temperature then the inspector

17 would check yes; if it doesn't they would put no.

18 Q. So they test the individual items for

19 their temperature to make sure they conform to

20 whatever the Marriott standards are?

21 A. Those items that are on the checklist,

22 not every food item. So they go in in advance

23 with certain number of food items that they're

24 supposed to…

25 MR. YOUNG: Randomly sample.

1

2 CERTIFICATE

3 STATEOFNEWYORK)

4 : ss.

(I.)5COUNTY OF KINGS)

6 I, JACQUELINE KIMBALL, a Shorthand

7Reporter and a Notary Public within and for

8 the State ofNew York, do hereby certify

9 that the foregoing deposition of MICHAEL H.

10 ROSENMAN, was taken before me on the 13th

11 day of November, 2007.

12 That the Said testimony was taken

13 stenographically by me and then transcribed.

14 I further certify that I am not

15 related by blood or marriage to any of the

16 parties to this action or interested

17 directly or indirectly in the matter of

18 controversy; nor am I in the employ of any

19 counsel in this action.

20 IN WITNESS WHEREOF, I have hereunto

21 set my hand this 13th day ofNovember, 2007. I

22 I

23

(:)24 JACQUELINE KIMBALLr­

(;)25 I

1 M. Rosenman

2 A. Randomly sample.

3 Q. In 2002 did Marriott employ

4 independent testers then?

5 A. I do not know.

Page 38

1

2 November 13,2007

3

4 —————— I N D E X ——————

5WITNESSEXAMINATION BY

Page40

PAGE

6 MR. YOUNG: Let me call your attention

7 to something.

8 MR. GARBARINI: You can ask questions

9 once I'm done.

10 MR. YOUNG: Okay, not a problem.

11 MR. GARBARINI: You know what, I'm

12 done.

13 MR. YOUNG: I have no questions.

14 THE WITNESS: Do you want me to—

15 MR. YOUNG: No.

16 (Time noted: 11:32 a.m.)

17

18

6 MICHAEL H. MR. GARBARINI4

7 ROSENMAN

8

9 ———–INFORMATION REQUESTS————-­

10 DIRECTIONS (DI):None.

11 INSERT:None.

12 RULINGS (RL): None.

13 REQUESTS (RQ): None. .

14 CERTIFIED (CE): None.!

15 MOTIONS (MO): None.

16 i –

17 EXHIBITS!.

18 ROSENMAN EXHIBIT# PAGE

19 MICHAEL H. ROSENMAN

19 1,

deposition notice 7

20		20	2,	First Ten phase ID Express Check-in 11
21	Subscribed and sworn to before me	21	3,	Housekeeping/Laundry Protocol14
22	this	day of	, 2007.	22	4,	SOPs January 2002	15
23				23	5,	SOPs after January 2002	18
24				24	6,	Sands Affidavit	22

25 (Notary Public) My Commission Expires:

25 7,

Quality Assurance Checklist 31

. .

10 (Pages 37 to 40}

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i'e:C.<:.-

(Case 1:03-cv-03042-DCF Document 39-5 Filed 02/29/08 Page 13 of 17) (Page 1)

((212) 986-1344) (COMPUTER REPORTING INC.)

((212) 986-1344) (COMPUTER REPORTING INC.)

(difference 12:17,21 dining32:4 directing 33:7DIRECTIONS 40:10 directly 39:17Disabilities 19:11Discipline 15:6 disclosure 18:6 discovery 34:9,11 discrepancies 19:17 discusses 26:15Discussion 14:25 27:11Dismiss 22:13 display 17:22 20:12 displays 32:9 distinction 10:8DISTRICT 1:2,3 document 13:8,23 15:415:9 16:16 22:2228:13 33:21 34:8,1834:24documents 11:18 18:1818:20 19:2 doing 8:19 36:4 domestically 8:20 done 8:21 13:5 26:2534:2 38:9,12 door 17:18 door/close 17:18 drafter 28:12 duly4:3 duties4:25 Eentitled 12:5entity 10:15 13:3,7 equipment 18:4 19:1419:22ESQ 2:9,17 essentially 5:5 established 11:5 et24:15 evaluation 34:25 ever 9:7,12 28:23every 29:2 35:20 37:22 examination 4:3,1040:5 except3:9 excepted 33:12 exchange 21:6exhibit 7:2,7,9 11:1311:14 12:3,3 14:2114:22 15:17 16:4,518:11,12,17,17 22:1422:15 31:10,1140:18 existing 5:7 expect35:19expects 35:9Expires 38:25explain4:24 12:9,17,20Express 11:15 12:614:17 40:20 extent34:9e-mail27:737:22,23 force 3:15 foregoing 39:9form3:9 5:22 8:8 11:411:9 28:10 29:2030:21 format 6:14Former 6:8,9forms 16:15 forth 26:4 29:14 found 19:25 33:14FR 12:14franchise 5:3,4,7,11,125:14,16,18,20,22,245:25 6:7,8,9 8:19,228:24 9:19 12:8,14,1613:3,4,6 14:2,7 15:1615:18 22:7,8,1823:16 29:14,18,19,2030:5,15 31:18,1932:2,23,25 franchised 12:19 21:1421:16 30:25 31:2 franchisee 5:15 13:523:19 26:17,22 27:1527:18,19 28:4,2429:3,8,11,22 32:833:5 franchisee's 33:15 franchisor 23:20 26:926:18,20,25 27:2,17.. 27:,1 _2-8 15,2230:6 32:12franchisor's 28:18 free 6:20 21:7 29:7freely 5:20 from6:17 32:21,2434:24fund 29:24 30:2,3,3,7 further 3:8,12 11:2039:14going 4:7 7:6 23:7 26:831:8 good 36:22govern 11:2,7 33:15 governs 33:14gross 30:5group 5:3,3 18:10,1818:19 19:10 24:2127:7groups 16:17,18 guess 7:11guest 17:15,16,16,1719:20,21 20:8,9,9,1020:11,15,23 21:3,721:11 27:4,8guests 17:23 19:15 20:327:6guide 26:2,3 guideline 35:20 guise 8:3 I identification 7:3 11:1614:24 16:6 18:1320:14 22:16 31:12 identified 18:21 ill11:15 12:6 14:1640:20importance 34:22,23 important 10:6Inc 1:8 4:20 7:19 incident 26:7 include26:11 32:5 includes 32:3 independent 38:4indicated 16:9indirectly 39:17 individual31:21 35:1837:18 industry 15:13 information 37:10 40:9INSERT 40:11inspect 26:19 inspection 19:25 20:4,526:24,25 35:5,6inspections 26:12,1431:8 inspector 37:16 instance 36:6 intellectual 29:13 interested 39:16 internal37:14 international1:8 4:20 .7:18,25 8:15,18 9:2510:8,11,14 12:8,1512:15,18,18 13:314:2,7 15:16,18 20:220:24 22:5 33:2335:16 internationally 8:21Internet 19:12 interpretation 28:8,9 inventory 17:24 19:24involuntarily 20:2involve 27:5 involving 6:7 9:8,13 in-room 20:3,4 issues 5:8 7:25 item34:25 35:14,1536:7,25 37:22 items 20:15 36:6,1037:15,18,21,23 J Jacqueline 1:21 39:639:24January 16:5,20,2418:13,23 40:22,23 jetted20:10June 15:19,19HH 1:17 4:2,2 38:19 39:940:6,17 hand 39:21 handed 18:21 handles 5:4handling 17:12 18:220:17 hardware 25:14 having4:3 health 20:12 held 1:18 hereunto 39:20high 17:18 19:12Hilary 11:22him 22:20 33:6,7Hospitality 17:20 hotel5:11,23 9:20 10:310:23 11:3,7,1112:23,23,25 13:2,4,513:7 14:3,7,10,1215:22,25 19:20 20:721:5,9 23:3,14,18,2123:23 24:23 25:4,925:16,25 26:3,5,1226:19 27:3,9 32:3,632:14 33:22 35:2037:9hotels 5:7 6:7 13:1924:5,10,12 25:5,726:11 30:4 35:16hours 20:7 housekeeping 17:20Housekeeping-Laun•••15:7Housekeeping/Laun•..14:23 40:21 hundreds 8:22 F F39:2facility 31:22 facsimiles 17:21failed 27:18 fails 27:15 failure 27:19familiar 6:14 10:21,2530:13,16 fax 17:14 federal4:8 34:12 feel6:20filing 3:6 fine 36:21 fire 20:5,6first4:15 6:24 7:1411:14 12:6 14:1635:2 37:4 40:20fitness 19:20 20:12 five 8:17flag 20:12Floor2:7folio 17:15 following 32:2 35:5 follows4:5follow-up 35:4food 31:15,24 32:17,2032:22 33:13,14 36:16E 2:2,2 4:2,2 39:2,240:4,17each 8:4 17:2 18:2519:4,7 21:4 35:14,1935:23,25 36:3,6,937:9 earlier 35:5 earns 21:5,11East2:15effect 3:15 19:6 effective 13:12 15:1918:25 either 37:9 election 28:17,18 eligibility 20:14 elsewhere 33:11 employ 38:3 39:18employee 23:9 24:10employees 12:24 13:423:14,17,2129:18,2137:5 employment 8:17 energy 17:14 enter 5:16 6:2 entities 8:16 9:25GGARBARINI 2:9 4:64:11 7:5,9 10:4,1911:12,17 14:20 15:216:3,13 18: ,1522:11,17 27:12 31:931:14 33:6,18 36:1536:21 38:8,11 40:6 gas 20:11general 6:4 31:3Generally 14:18give 5:13 7:6 8:12 22:6given 13:24 37:8 gives28:15 gladly6:20GLENNA1:5 go 37:8,22)

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Case 1:03-cv-03042-DCFDocument 39-5 Filed 02/29/08 Page 14 of 17

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(Case 1:03-cv-03042-DCF Document 39-5 Filed 02/29/08 Page 15 of 17) (Page3)

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